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How to Configure Penalty Rates

Penalty rates provide increased pay for work performed during less desirable times — such as weekends, nights, public holidays, or specific shift windows.

Where To Find It

  1. Open Awards from the main navigation.
  2. Select or create an award, then open the Rules step (Step 4).
  3. Select the relevant Employment Type.
  4. Expand the Penalties accordion.

Penalty Types Available

Penalties come in two formats — rate multipliers (percentage of ordinary rate) and dollar amounts (fixed hourly value). Each format is available across several trigger types.

Daily Penalties

Apply to entire days of the week.

  • Daily Rate Multiplier — a percentage-based penalty for selected days
    • Applicable Days — tick the days this penalty applies to
    • Penalty Rate — enter the rate as a percentage (must be greater than 100%)
  • Daily Dollar Value — a fixed hourly dollar penalty for selected days
    • Applicable Days — tick the days
    • Hourly Penalty Dollar Value — enter the dollar amount per hour

Shift-Based Penalties

Apply when shifts fall within a defined time range.

  • Shift Rate Multiplier — percentage-based penalty for shifts in a time window. Applicable days are checked against each calendar day the shift spans; only the hours that fall on an applicable day receive the penalty.
    • Applicable Days — tick the days
    • Penalty Rate — enter the percentage
    • Shift Ranges — define one or more time windows:
      • Start Shift Range and End Shift Range for each window
  • Shift Start Day Shift Rate Multiplier — percentage-based penalty that is determined by the day the shift starts. If the shift starts on an applicable day, the penalty applies to all hours in that shift — including hours that roll into the next calendar day. If the shift does not start on an applicable day, no part of the shift receives the penalty.
    • Applicable Days — tick the days
    • Penalty Rate — enter the percentage
    • Shift Ranges — define optional start and end time windows:
      • Start Shift Range — the shift must start within this window
      • End Shift Range — the shift must end within this window
  • Shift Start Day Checkin Time Rate Multiplier — percentage-based penalty that uses the shift start day to determine applicable days, with additional filtering based on actual check-in and check-out times. If the shift starts on an applicable day and the employee's first check-in and/or final check-out falls within the configured time ranges, the penalty applies to all hours in that shift.
    • Applicable Days — tick the days
    • Penalty Rate — enter the percentage
    • Check-in Range — optionally restrict based on actual clock-in/clock-out times:
      • Start Check-in Range — the employee's first check-in must fall within this time window
      • Finish Check-out Range — the employee's final check-out must fall within this time window
      • Leave either range blank to skip that check (e.g., set only the start check-in range if you only care when the employee clocked in)
  • Shift Dollar Value — fixed dollar penalty for shifts in a time window
    • Same configuration with Hourly Penalty Dollar Value instead of percentage

Shift Rate Multiplier vs. Shift Start Day variants: The key difference is how applicable days are evaluated. The standard Shift Rate Multiplier checks each day block independently — so if a night shift crosses midnight, only the hours on an applicable calendar day get the penalty. The Shift Start Day variants check the shift's start day once: if the start day is applicable, every hour in the entire shift is penalised; if not, none are. The Checkin Time variant adds a further filter: the penalty only triggers when the employee's actual check-in and/or check-out time falls within the configured ranges — useful for penalties that should only apply to specific shift patterns like permanent night shifts.

Time Range Penalties

Apply to hours worked within a specific time-of-day range.

  • Time Range Rate Multiplier — percentage-based penalty for a time window
    • Applicable Days — tick the days
    • Penalty Rate — enter the percentage
    • Applicable Time Range — set Start Time and End Time
    • Shift Ranges (optional) — restrict this penalty to shifts that start and/or end within specific windows:
      • Start Shift Range — only apply the penalty when the shift starts within this time window
      • End Shift Range — only apply the penalty when the shift ends within this time window
      • Leave both blank to apply the penalty to all matching shifts (default behaviour)
  • Time Range Dollar Value — fixed dollar penalty for a time window
    • Same configuration with Penalty Currency Rate instead of percentage

Public Holiday Penalties

Apply specifically to work performed on public holidays.

  • Public Holiday Rate Multiplier — percentage-based penalty
    • Penalty Rate — enter the percentage
  • Public Holiday Dollar Value — fixed dollar penalty
    • Hourly Penalty Dollar Value — enter the dollar amount
  • Public Holiday Time Range Rate Multiplier — percentage for a specific time window on public holidays
    • Penalty Rate + Applicable Time Range
    • Shift Ranges (optional) — restrict this penalty to shifts that start and/or end within specific windows:
      • Start Shift Range — only apply the penalty when the shift starts within this time window
      • End Shift Range — only apply the penalty when the shift ends within this time window
      • Leave both blank to apply the penalty to all matching shifts (default behaviour)
  • Public Holiday Time Range Dollar Value — fixed dollar for a specific time window
    • Penalty Currency Rate + Applicable Time Range

Setting Up a Penalty Rule
  1. Click Add Rule under the desired penalty type.
  2. Configure the required fields (days, rate/amount, time ranges).
  3. Enter the Clause number (from your award document).
  4. Add a Rule Title for easy identification.
  5. Use the Enabled toggle to activate the rule.

Managing Penalties
  • Enable/disable all penalties — use the toggle on the Penalties accordion header.
  • Remove a rule — click the remove icon in the clause section.
  • Multiple rules — you can add multiple penalties of the same or different types.

Tips
  • Rate multipliers (e.g., 150% = time and a half) are the most common penalty format in Australian awards.
  • Dollar value penalties are used when your award specifies a flat additional amount per hour.
  • Shift-based penalties are useful for late-night or early-morning shifts that span specific windows.
  • Use the Shift Start Day variant when your award says the penalty for a shift should be determined entirely by when it starts — common for permanent night-shift allowances.
  • Use the Shift Start Day Checkin Time variant when the penalty should additionally depend on when the employee actually clocked in or out — for example, a permanent night-shift penalty that only triggers when the employee checks in after 18:00.
  • Time range penalties target specific clock hours regardless of when the shift started.
  • Use Shift Ranges on time range penalties to limit the penalty to specific shift patterns — for example, only applying an evening penalty to shifts that start after 14:00.
  • Stack penalties carefully — confirm with your award document whether penalties are cumulative or exclusive.

Related Topics
  • How to Configure Daily Overtime Rules — overtime rules that work alongside penalties
  • How to Configure Meal Break Rules — penalties related to meal breaks
  • How to Use the Test Bench — validate your penalty configurations